>> a very warm welcome to the "journal" from dw in berlin. the former german finance minister will challenge chancellor merkel in the 2015 election. >> the french government unveils steep tax hikes on businesses

and the country's wealthy as it seeks to cut the nation's budget deficit. >> in formula one, team mercedes is not going to renew michael schumacher's contract after the season is over. german chancellor angela merkel will have a formidable challenger when she seeks reelection next year. it has been announced that former finance minister peer steinbruck will be running to oppose her. >> is a sharp-witted and sharp- tongued opponent. his candidacy was announced earlier today in berlin. >> he is the spd star right now after the two other contenders made way for him.

the parliamentary leader refused to run a second time, and party leader did not think he would attract enough votes, so steinbruck is said to compete against his onetime ally angela merkel for the chancellorship. >> i accept the challenge to take the spd to victory in the next election. that is our goal. we want to oust this government. >> steinbruck says he wants to head a social democrat green coalition. he has a degree in economics and is known for pragmatism and expertise in fiscal policy. he is regarded as a centrist, and the spd hopes he can pull votes from conservatives. am i think they have a better chance with him. he seems more down to earth -- >> i think they have a better chance with him than with gabriel. he seems more down to earth. >> he can do a lot.

he understands a lot. but he also does not come across so well. >> i'm not sure if he will do well against mrs. merkel. she is doing a great job. >> for the spd, a tough decision is now out of the way, and the real race has just begun. >> is the former finance minister chancellor material? for some insight, let's turn to our political correspondent. peter, what was his main message at the news conference today? >> the main message was that he wants an outright victory in next autumn's election. he does not want to just press social democrats to do better than last time of the time before, but nevertheless end up as second-best as the junior coalition partner in another grand coalition government, the kind of government we had in germany from 2005 through 2009 with steinbruck as finance he says he wants to forge a coalition between social

democrats and greens, which he believes will be strong enough to oust merkel's government. liberals are in disarray at this point, so that is a problem for angela merkel. he wants to oust the current government and with it angela merkel, and that would be -- that would mean reshaping german politics. >> what does he need to do in order to convince voters that he can lead germany? >> he has to show that he is listening and that he cares. everyone knows steinbruck has a great deal of financial expertise and acumen, but some people think he is a little too close to the financial sector, to the banking sector, that he is too much of a centrist. certainly here, there is a perception in germany at the moment that there is a great deal of social imbalance. a lot of people among the social democrats are concerned that the gap between the rich and poor is getting greater, and some people blame that on the financial markets. some people blame it on the financial sector. it is no coincidence that

steinbruck earlier this week came out with an initiative to regulate the banks, to tame the banks, as he put it, in an attempt to win over hearts and minds among his own party and among other voters, too. >> thanks for that analysis. we return to you in just a moment. >> let's take a closer look at this match appeared the battle for the top political job in germany could end up being pretty close. steinbruck, as we've heard, has minister to run on. he is an economist by profession, giving him credibility in these times of crisis. >> and he has an economic resume to compete with angela merkel's ph.d. in physics, but merkel has been at the front of structural reforms that are changing the shape of europe, and she is a fierce political tactician. >> these images from 2008 stick in the minds of many germans. chancellor angela merkel and

then-finance minister steinbruck reassuring the public shortly after the collapse of lehman brothers shook the political system. >> i stress we in the government have a sense of responsibility about this. we will make sure people in germany need not fear for their savings. nobody will lose a single year of -- single euro. >> merkel and steinbruck steered germany through the beginnings of the financial crisis. many felt they made a good team, but since the social democrats were thrown out of office, the two have been opponents. merkel has managed the crisis without steinbruck and remained popular. if the 3% of germans want to keep her as chancellor, although some in her own party would like to see her go -- 53% of germans want to keep her as chancellor. many christian democrats believe they cannot win without. polls show only 36% one steinbruck -- wabt steinbruck --

want steinbruck as chancellor. but many conservatives say they trust his expertise in economic and fiscal policy. just last wednesday, steinbruck presented his own plan for combating market instability and ridiculed merkel's policy of rescuing banks. >> a bank just has to declare itself too big to fail, and then the state will protect it, meaning taxpayers are held hostage. that is how it works. sometimes i feel like declaring myself too big to fail so i would have a big guarantee as well. >> merkel cannot afford to underestimate steinbruck. her coalition partners, the free democrats, have dismal approval ratings, and her own biggest hurdle -- her party is not nearly as popular as she is. >> time to go back to peter, our political correspondent, for more on the matter. what is your opinion? do you think that steinbruck can

carry it off in his bid to be the next chancellor? >> there is no doubt whatsoever that angela merkel is a wily campaigner -- she has already won two, after all, and -- but many in berlin say they think steinbruck does have what it takes to challenge angela merkel in the campaign trail. you mentioned the fact already that angela merkel is a scientist, a pragmatist, a rationalist, and she has very much set the tone of german politics, keeping the temperature of german politics very cool. that has suited her well. what peer steinbruck might set up to do is to raise the temperature and emotionalize german politics by talking of emotional hardship and received imbalances. it will be an interesting challenge for angela merkel, that is for sure.

>> thanks for that. in a speech to the united nations, westerwelle appealed for an end to the dispute over iran's nuclear program. >> the foreign minister says he does not think anti-western demonstrations in the middle east think -- means there is a clash of cultures going on. >> the extremists want to stop change and his democratic awakening with violence. we cannot let them succeed. germany takes sides in this confrontation. we will maintain our commitment to the people of the arab world and build on that commitment. we will not react by turning away, but by redoubling our efforts. westerwelle speaking at the united nations in new york. france is a socialist government has unveiled a budget that is

being called the toughest in three decades -- france's socialist government. it includes tax hikes for the rich and businesses in france. it is aimed at showing francois hollande and his team have the physical rigor to maintain france's reputation as a pillar in the eurozone. >> they came to narrow the deficit next year to 3% of national output -- date came to narrow the deficit next year. >> among the measures -- a temporary 75% income tax on earnings over 1 million euros. business also faces cuts in tax breaks. the prime minister presented the 2013 budget. >> this is a budget for social justice. and it is a budget for growth. it prepares us for the future. it is a courageous and responsible budget. >> the package includes public

spending cuts of 10 billion euros. france's economy is in a precarious position. second quarter gdp was stagnant, and unemployment has just talked 3 million -- topped 3 million. the government is aiming to make good on election promises while making sure austerity does not hit france into recession -- tip france into recession. >> spanish banks will need 59 billion euros to get back on their feet according to a new report commissioned by the spanish government. >> that will help take pressure off the prime minister, who is seeking to avoid a bailout. spain says they will ask for around 40 billion euros of the total sum, while the rest may be able to be raised by the banks themselves. the european commission welcomed the results. >> let's take a look at markets. european shares were on a bit of a roller coaster ride this

friday. after moving higher in early trading, that ultimately finished the week on a down note. our correspondent sent us this summary from frankfurt. >> spain remains in the focus of international investors, also here on the frankfurt floor where shares fell sharply today. in the morning, investors cheered the austerity measures that the spanish government has decided, but the stress test for spanish banks dragged down the mood here for shares. further on, there has been a lot of speculation going on that the big rating agencies could downgrade spain again. this would lead to higher yields and would be very difficult for spain in this situation. >> we stay in frankfurt for a quick run through the numbers. the dax plunged, as we saw there, in the afternoon session,

down by a full percent at the closing bell. euro stoxx 50 down by 2%. across the atlantic in new york at this hour, the dow down slightly, not too much there. and the euro trading lower against the dollar. it is at a value of $1.2850. >> after weeks of speculation, japanese electronics giant sony has confirmed [inaudible] olympus for 500 million years. sony will take an 11% stake in the struggling camera equipment maker. olympus has been reeling from the revelation of a cover-up of over one-billion-euro investment losses stretching back to the 1990's. >> it will take a full two years before the european automotive sector experiences a rebound. that is the word from ceo's at

the paris auto show. >> carmakers dealing with economic gloom and weak demand in the consumer sector. they say more plant shutdowns and layoffs are inevitable. >> customers remain hesitant, but manufacturers are rolling out exciting new models. >> the peugot onyx is being called the super car. its hybrid engine generates 600 horsepower, but for everyday use, the new 2 08 might be more suitable. peugeot hopes the car will be a moneymaker. they fail to look beyond european markets for too long. >> we have been growing in terms of international market share, so a few years ago, we had 30% of our products out of europe. now we have more than 50% of our sales.

we have two strategy products that will be launching in international markets. this is the way we are diversifying, and we are reacting in order to fight to get better results. >> right now, it is doing better thanks to its strategic partnership with nissan and sales of its electric cars on the home market have been boosted by a government premium for low-emission vehicles. a subsidy that foreign competitors are none too happy about. >> we will be back after the break.

>> welcome back. >> georgia goes to the polls on monday following the civic revelations of systematic torture and rape of prisoners in the country's jails. video footage that surfaced last week led to massive demonstrations and the resignation of two top ministers there. >> the scandal has seriously

damage to the position of the ruling party as it faces a challenge from an opposition coalition led by a billionaire tycoon. for years, president saakashvili enjoy the support of western leaders and was seen as a democratic supporter, but for the first time, it appears there is a chance the opposition could unseat him from power. the torture scandal has thousands calling for his resignation. >> this photograph shows a prisoner in jail in the capital, tbilisi. he has repeatedly told his wife that he has been beaten by prison guards. since the video was released, the whole country has been talking about abuse in prisons. this woman has never been interested in politics, but she came out to protest along with thousands of other people in georgia. they say president saakashvili should step down. >> i support these people because they want to help me. with the elections coming, i could not just sit at home and

do nothing. i had to come in protest -- and protests. >> the mass protests were prompted by this footage. it shows guards torturing inmates in a tbilisi prison. the footage is said to have been secretly filmed by a former prison worker. the nation is in shock. miranda is among those who fear the scand could destabilize the country. the videos were first broadcast by two tv stations closely associated with the billionaire opposition leader. miranda supports saakashvili and is concerned the scandal could damage his chance of being returned to office. >> the standard of living has gone up here in the past few years, but once again, we have

mass protests, and they could turn into war or a revolution, just so someone else could take control. no, i do not want that again. >> she remembers the collapse of the soviet union, the ensuing civil war, and the economic crisis in georgia in the 1990's. she says things improved in 2003 when president saakashvili came to power in a peaceful revolution. she says corruption has since decrease, and the country has become more attractive to investors and tourists -- she says corruption has since decrease. george it has experienced a construction boom, but many people say they are not benefiting -- georgia has experienced a construction boom. >> people used to show up, constantly claiming they wanted to check something, but really, they wanted brides. it is not like that anymore. we have forgotten what that is like.

-- really, they wanted bribes. >> critics of saakashvili ecb is illustrate his dark side and that his style of governing is becoming increasingly authoritarian and hundreds of people have been wrongly imprisoned -- critics of saakashvili say the video illustrates his dark side. this a police and prison guards have systematically used false charges and information gained through torture to imprison people. >> high-ranking officials knew people were being tortured in georgian presents -- prisons. the parliamentary ombudsman reported on it, but lawmakers convince themselves it is not as bad as it is. >> her husband was imprisoned on charges of drug dealing and terrorism. she says she is certain he is innocent. >> i hope there is a change of power and everything gets

better. i hope everyone who was involved in the torture is punished. >> above all, she wants to see her husband set free. to try to make that happen, she says she has to vote against president saakashvili on monday. >> here is a look at other stories making news. rebels in syria say they have started a major offensive in the northern city of aleppo against troops loyal to president assad. i'd still rage as the government continues its onslaught on rebel strongholds -- fights still rage. >> more than 80 african migrants ran into trouble. they were arrested by italian authorities and are to be

transferred to detention center. >> the communist party has expelled one of its former rising stars, ordered to face a number of charges including abuses of power, taking bribes, and improper sexual relations. he was convicted of murdering a british businessman. now to that formula one racing news. mercedes has signed lewis hamilton from mclaren to replace former champion michael schumacher. >> the 2008 f1 champion has signed a lucrative deal with mercedes. >> the racing future of the 43- year-old schumacher is uncertain. >> since his comeback, schumacher has not won a single race. in nearly three years, he has been on the podium only ones.

even within the team, his rival has outperformed him. criticism of the 43-year-old's kraft has been mounting. he frequently makes mistakes. now, he is finished with mercedes. he got interested in car racing as a child on the go cart track his father operated back home -- on the go kart track his father operated. it was the beginning of an unprecedented career. he won seven world championships. now, lewis hamilton is set to replace himon team mercedes. hamilton is reported to it received a three-year contract with some 75 million euros. schumacher's racing future, on the other hand, is unclear. a spokesperson said on his behalf that joining any racing team is not currently a priority. >> for more, we are joined by dw's sports correspondent.

not -- thanks very much. not much of a comeback. is it the right time for him to leave? >> i think you said that absolutely right. this was not what they had in mind when they brought him back. it is a seven-time world championship, and in the past three seasons, he has only been on the podium ones. that is absolutely terrible. they had to pull the plug. this is a big-money industry. quite frankly, it was not a good fit between driver and team, so they had to do something. this season has not been going anywhere. i think fans can just hope he gets a couple of good results this season. >> he is still one of germany's most-loved athletes. he has an outstanding winning record. is his career over now? >> i think his writing career is really up in the air. 43 years of age is a long time to stay in the sport that is based on having very quick reflexes. he himself says he does not know what he is doing.

there have been vague rumors about him going elsewhere, but i cannot really see that. because he is such a big name, he cannot go to any of the small names, so i see him settling into a bigger team but i am more of a technical capacity. >> the rumors have been confirmed -- lois hamilton has been scooped up by mercedes -- louis hamilton has been scooped up by mercedes -- lewis hamilton has been scooped up by mercedes. will this work out? >> he was touted as the tiger woods of formula one, but he has come down a lot since then, so it is by no means guaranteed. the driver and he will have to work well together. most people do not think of that when they think about formula one. if they can get the synergy going, i think it is a good move. >> thank you very much for joining us in the studio. >> to the art world now, and a highly anticipated exhibition is

opening in duesseldorf on saturday, showcasing works by one of the greatest early as 20 cents -- early 20th century artists. >> this is the first time these paintings have been brought together. take a look at the multifaceted work. >> this back and front view gives viewers a new perspective on how this unique work was created. the four since foursquare and the 34 triangle -- the four stands for square, and the three for triangle. the work is so very it is hard to believe they were all done by the same hand. as well as being an artist, he had a good hand at business. >> clay was very specific about which works to sell at what price. he created price categories, i

feel like. in addition, he made a selection of works that he did not want sold. it was his estate, his legacy. these works stayed with him and were meant to be kept. >> his paintings were incredibly popular until the nazis came to power. he was sacked from his professorship at dusseldorf's art academy and fled to switzerland. he painted this self portrait in 1945. he knew he was dying. what followed was a creative crisis. then a creative frenzy until his death in 1940. >> that is it for now. thanks for watching. >> do not forget, you can check out a lot more on our website in the meantime. that is at dw.de.

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